Expected U.S. Gdp Growth Rate Going Forward

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Date Submitted: 05/21/2012 05:41 PM

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Expected U.S. GDP Growth Rate Going Forward

Since 2007 our economy has been failing, the U.S. has had past recessions and should be moving forward but is it? The Bureau of Economic Analysis (BEA), states the United States is still trying to recover. At the end of 2011, various key data for U.S. economics continued to improve. This suggests that the economy may recover in 2012 but at a pace that will probably be below the long-term average. The United States is still in the midst of a severe economic crisis and political issues are still apparent. The forecast for the 2012 U.S. GDP growth has been revised to show a slightly higher to 2.3% rising to 2.4% in 2013. This compares with an expected growth rate of 1.8% in 2011. The most optimistic estimate is for growth of 3.9% in 2012. The GDP measures the economy, it is the total market value of goods and commodities produced by a country, it is a measure of income as well as a measure of all expenses in the economy (U.S. GDP, 2012).

By using quarter to quarter figures, it determines if the economy is growing faster or slowing down from the previous quarters figures. The GDP is also used to compare the size of economies and relative growth rates in other countries. The GDP has many uses, the Federal Reserve uses the GDP to make the decision to stimulate or restrain the economy, business leaders will compare the GDP rates to see if the economy is changing, then they will adjust or change their investments opportunities. In determining the GDP effects of inflation, imports and income from U.S businesses and persons who live outside the U.S. are excluded (U.S. GDP, 2012).

To measure the GPD, the product (to add up the outputs of every class of enterprise to arrive at the total), expenditure (sums up the people's total expenditure in buying things) or income (incomes of productive factors must be equal to the value of their product) approaches are used. By finding the sum of all producers income the GDP can then be...